The incentive funding is allocated to highways authorities based on their performance, with the most inefficient councils receiving less cash. The Government says this will encourage authorities to make improvements, particularly as more than a quarter of funding will be allocated on the basis of competition or performance by 2019.

'Mr Jones said: 'Authorities that spend money on roads efficiently will be rewarded with extra funds to keep up the good work. While authorities with a history of inefficiency will receive comparatively less money. Over time, we expect that all authorities will improve.'